Under the Bonchon Area Development Agreement, what qualifications must the Area Manager have to oversee operations of Bonchon Restaurants?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
nt at all times during the term of this Agreement and operations of the Bonchon Restaurant.
Area Development Agreement
If you operate under an Area Development Agreement, then prior to you (or your affiliates, collectively with you) opening your third Bonchon Business and Restaurant, you must designate in writing to us an Area Manager who will have the obligation to oversee operations of each Bonchon Restaurant that you or your affiliates own and operate. You must inform us in writing of your Area Manager and any replacement Area Manager. The Area Manager must be certified to manage multi-unit operations and must have attended and successfully completed our Initial Training Program (and such additional training that we may require). Your Area Manager may not hold any other position in your organization or in any business entity or in any of your Bonchon Businesses while he/she is serving as your Area Manager. Upon the death, disability or termination of employment of the Area Manager, for any cause or reason, you must immediately notify us, and designate and obtain our written approval of an interim or acting Area Manager and, no later than 10 days following the death, disability or termination of the predecessor Area Manager, you must designate a successor Area Manager. The requirement to designate an Area Manager prior to the opening of your (or your affiliates' collectively with you) third Bonchon Business applies whether the development of your third Bonchon Business is (i) pursuant to the Development Schedule in Section 6.01 of your Area Development Agreement, (ii) the result of your (or your affiliates) entering into separate unrelated unit franchise agreements, (iii) the result of your (or your affiliates') acquisition of existing Bonchon Businesses or (iv) the result of some combination of the foregoing.
Confidentiality Agreement and Guarantee
Your Operating Principal (if he/she does not hold an ownership interest in you), General Manager, Manager, Area Manager (if applicable), the other persons listed in Item 14 and all of your nonmanagerial personnel must sign our Confidentiality Agreement (Exhibit F to the Franchise Agreement and Exhibit D to the Area Development Agreement) and maintain the confidentiality of our confidential and proprietary information(see Item 14).
If you are a business entity, each owner of a 5% or greater interest in you must sign a personal guarantee in the form of Exhibit H to the Franchise Agreement and/or Exhibit E to the Area Development Agreement).
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 69–71)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, an Area Manager is required to oversee operations of Bonchon Restaurants once a franchisee (or their affiliates) opens their third Bonchon location under an Area Development Agreement. The Area Manager must be certified to manage multi-unit operations. Bonchon must be notified in writing of the designated Area Manager, as well as any replacements.
In addition to multi-unit certification, the Area Manager must have attended and successfully completed Bonchon's Initial Training Program, including any additional training that Bonchon may require. Furthermore, the Area Manager must first obtain and maintain a current Bonchon-approved nationally accredited food manager certification from the National Restaurant Association, along with any safe food handling courses mandated by the local municipality where the restaurant is located.
It is important to note that the Area Manager cannot hold any other position within the franchisee's organization, business entity, or any of their Bonchon businesses while serving as Area Manager. If the Area Manager's employment is terminated, or in the event of their death or disability, Bonchon must be notified immediately. A successor or acting Area Manager must be designated within 10 days of the event. This successor must also meet the required qualifications, including multi-unit certification and completion of the Initial Training Program.